In first person shooters, normally, there's no difference between "what you're looking at" and "where you're shooting." Your weaponry is "head mounted" and you're always aiming at the center of your screen.

There is now a general expectation that people that shoot at you also look at you, and, conversely, that if you're playing spy and you're looking at somebody's back, that somebody can't just shoot at you without turning all the way around.

TF2, however, has recently introduced Oculus Rift support and now allows a few lucky (and disoriented) players to look in a direction and shoot in another.

How is this conveyed to other players, however? Do they try to show the body and weapon moving independently from the head? Does the model move just with the head, or only with the gun?

From the perspective of online game theory, I think aiming direction is significantly more ingrained than client camera direction (aiming direction has to be networked, camera direction does not), so it's likely that other players' models face shooting direction. Not answering because I have no source, just a guess.
– ToomaiApr 4 '13 at 16:53

1 Answer
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I've only seen one youtube video so far. If you watch between 7:00 and 7:10, you'll see him first moving his mouse with his head still, then moving his head with his mouse still. If you watch the shadow, it only changes when he moves his mouse. I would conclude that only the aiming direction affects the player models.

According to the user guide, there are a number of config variables which look like they affect the player's model. I would assume, though, that these settings are all local since they do things like remove the model's head for easier rendering.

Based on the video, I'd say that only the aiming direction will be shown, I guess we'll have to wait until it's released though.